It’s the jobs, stupid

Whatever the causes of the recession, addressing those causes alone will not end it. We are currently seeing an acceleration of job losses, which is the path to depression. An economy can absorb a certain level of unemployment without serious problems. Above that point, higher unemployment becomes a self-perpetuating condition as shrinking incomes reduce spending, resulting in still more unemployment. Jobs will be lost in service sectors, small businesses will shut down.

Foreclosures will increase, but now among those who had traditional mortgages, who had till now been making payments without difficulty. Cars will be repossessed. Spending in all sectors will decrease–including the retail food sector. Restaurants will close. Those still with jobs, of course the majority, will curtail spending out of fear. The travel sector will experience declines.

At this time it is essential to preserve however many jobs that can be preserved. That’s the primary reason for bailing out the automakers. While it’s true that there are currently very few customers for new cars, improvement must be anticipated as people are put back to work.

President-elect Barack Obama has made it clear his top priority will be job creation. He sees the threat of spiraling unemployment. That the current administration refuses to address this concern makes one suspect that Republicans may wish to allow conditions to worsen even more, leaving the new president with an almost hopeless depression even before he takes office.

To help with your decision…

All you independent voters out there, if you’re on the fence, if you’re leaning toward McCain, here’s food for thought: as the economy careens toward collapse, remember that the last time the US suffered a depression, we had a Republican president, both houses of Congress were controlled by Republicans, and the Supreme Court had a conservative majority. The 1929 crash followed a time of unprecedented growth. The Great Depression was characterized by widespread loss of jobs, foreclosures, business failures and bank collapses. And, while the Democrats now have a small majority in the House, the Senate is for all practical purposes still in conservative hands. The legislature is NOT veto-proof. Bear this in mind now, as prices rise, as jobs disappear, as free-wheeling lending practices have led to foreclosures. Independents, you do NOT want to vote Republican in the next election, no matter the office.